Task 1: Obtain Information on Business Issues

Introduction:
This document is for the owners of CoffeeVille cafés, Rufus and Emma Belcastran, who have
recently demanded that the company be investigated in order to identify possible reasons for
their falling sales and to check the business operations for potential problems. After the opening
of the main coffeehouse in 2009, the company has expanded to three additional espressos in
Melbourne's CBD, both of which have been profitable until the last three months, when prices
have risen and deals revenue has decreased. CoffeeVille serves high-quality espresso at a fair
price, as well as gourmet food and beverages. Its customers are office workers who work near
the shops and eat out often. The company's goals are to increase revenue, raise product and
management standards, increase marketing campaigns, and position the brand as socially and
environmentally responsible. In either event, these objectives are not being met, and the report's
aim is to provide a comprehensive case study.

1. Summary – Customer Feedback & Business Performance Data:

Customer feedback on food/coffee quality and customer care is quite positive, according to the
survey, but customer feedback on pricing is not so positive, particularly given the current
economic situation. In terms of market performance data, there is a clear decrease in sales, which
is unsurprising considering that consumers are more concerned about finding inexpensive
options for all types of services without sacrificing too much in terms of product or service
efficiency.
2. Issues & Problems the Business is Facing:

Since its creation four years ago, CoffeeVille has been stable and profitable in the commercial
centre, but it has recently seen a significant increase in costs as sales revenue has decreased,
affecting the business's profitability profoundly. The company has spent a lot of money to
establish the brand in four different stores, and the large stone, which is the most recent one to
launch, has taken much more time and money. CoffeeVille has been impacted as a result of
businesses and workplaces closing and heading to a different zone, as well as the fact that people
are concerned with their professional wellbeing these days and gravitate toward the least costly
options in order to avoid being impacted by the monetary emergency. There are currently a few
problems that the company is dealing with, which are mentioned below:
 • For the first half of 2015, sales classes and incentives have been reduced. Food deals are
down 10%, beverages are down 12%, and delivering food is down 17%. In comparison to
the previous year, rising prices caused CoffeeVille to cut jobs by 19 percent.
• The costs of doing business are rising; higher salaries of up to 15% for skilled and
professional baristas, increases in property leases of 10% to 18%, and rapid increases in
item costs, such as espresso beans and beef, which have risen to 20% in recent months.
• The traditional business' peak times are not as busy as expected; for example, outer
cooking deals were down 21% and 23% in November and December, respectively.
• Due to high leasing rates, some regular clients are going out of town, and a few
businesses are closing permanently, resulting in less customers in the store.
• A lot of effort is being poured into and concentrated around the fourth shop with little
fruitful outcomes.
3. Systems for Validity & Reliability of Information:

Working of an organization depends on assortment and age of data inside the association
with the goal that it is feasible for the association to create diverse useful focuses in the
association. This piece of the report is engaged with perceiving various sorts of data that is
joined to the hierarchical working. Business is normally founded on the kinds of data that
is joined to the elements of various branches of the association, for instance, ranking
directors require data that will encourage the business arranging at various stature. Then
again, center administration of the association need point by point data that encourages
them to screen or control the business exercises from different perspectives.
Representatives in an association must be furnished with the data from the inner
administration of the organization to permit them to complete their capacities.
Subsequently, the data that is given to the higher and centre level supervisors are for the
most part sourced from the outside condition. In this way, such frameworks of data can be
grouped in a few structures.

4. Types and sources of information required to determine an appropriate course

of action and support decision-making.
The evidence has been thoroughly verified to verify its authenticity and reliability,
allowing the organisation to comprehend the present scenario and make informed choices
in the future. Different aspects of market challenges are included in the technologies used
to analyse internal and external content. The economic knowledge source was checked and
correlated with three revenue figures from July 2014 to July 2015, which is the previous
study. In terms of financials, the company's revenues have been steadily declining,
especially in November and December 2015. Another source to remember is employee and
consumer input, which is important for company since they are at the heart of CoffeeVille.
This is often a means to guarantee that the feedback system is working well and that any
potential issues can be resolved to the customers' satisfaction (internal and external). In any
case, any unnecessary data must be removed before review can begin.

5. How to utilise formal and informal networks when identifying and analysing
business problems or issues.

Both formal and informal networks can identify and study the problems; which collected
research support can identify problems and determine the most correct way to deal with specific
situations. As part of the formal network can be used in this report are formal meetings or
seminars in Australia, that is The Melbourne Chamber of Commerce, it is a part of a network of
organisations that encourages the growth of Victorian business. On the other hand, informal
networks include social media (Facebook, Instagram), general conversation such as face-face,
teleconferences and virtual contacts. We also use practical communities, such as associations like
Australian Retailers Association, Cafe Owners and Barista Associations of Australia.

6. Types of systems that would be appropriate for their business:

In the context of the current functioning of the organisation CoffeeVille the system that is best
suited for the same is knowledge management system and management information system. The
organisation is developed on the norms of business that now focuses on a new venture that is
meal delivery. Any company has a structure in place that defines the hierarchical data
framework. Aside from displaying the organization's data structure, the business system may
often be used to improve the organization's competitiveness as well as its commercial
attractiveness. There are different market frameworks in use in the organisation, but only one of
them is used within an organisation.

The variety of business systems

Decision support system: 
Such a system, also known as an official framework, is associated with the participation of the
organization's upper management structure or managers in the making of business decisions for
long-term business operations (Demirkan and Delen, 2013). Such a system is adaptable and does
not interfere with the day-to-day operations of the company when focusing on measurable
business outcomes.
Management information system: 
In this case, it is customary to use both the central administration and the lower board
administration frameworks. Following that, it expects the association's middle and lower boards
to be engaged. The offices as described by the system, for example, are the social affairs of data
that are relevant to the association (Zsambok, 2014).
Knowledge information system: 
Such a system is recognised with a connection that makes the production and dissemination of
related data easier. The system is reliant to a large degree on staff who are involved in the
creation of new knowledge and have developed the ability to communicate with other members
of the organisation or collaborators (Bonczek, Holsapple and Whinston, 2014). As a result,
adequate grouping of knowledge in the organisation and proper distribution of the equivalent is
encouraged.

7. How to develop and write complex texts using appropriate conventions and writing
styles.
Complex text can be easily written with the help of different digital software or system that
support the development of complex text and writing styles.

8. Effective use of digital technologies to manage business operations for strategic and
operational purposes.
In terms of government policy, market, social, and cultural norms, what is relevant to a retail
business operating in London could be different from what is applicable to a retail business
operating in the Sydney market due to the continued proliferation of emerging technology
increasing accessibility and pace of knowledge from all sections of the globe. It is important to
assess information for authenticity and legitimacy in any case and to discard information that is
inconsistent or confusing. Many workers interested in operating through national and cultural
lines can come to understand the cultural nuances within the organisation and how knowledge
may be overlooked if it is not taken in its larger sense in this global case.

9. objective/s for the analysis processes you plan to undertake.

Companies may ensure priorities are accomplished by using the S.M.A.R.T. approach to
accomplish results, which is dependent on data interpretation that is transparent, applicable, and
compatible with the choices taken. Data may be controlled and implemented to see what
expectations were reached, not met, and when they fall behind because they are precise,
observable, attainable, appropriate, and time bound. Following that, action strategies should be
created to better overcome these shortfalls.

10. Using statistical analysis, identify patterns and emerging trends and interpret their
causes and effects on the business.
Businesses will see the effect on their bottom line whether they adjust the price of a good or
service, if they sell to their clients, or where they venture into different markets by doing a
sensitivity analysis of all proposed alternatives. Models assist in reducing the risk associated with
their choice. Sensitivity analysis, also known as the "what-if" technique, is a useful forecasting
method that involves estimating different possibilities of what-ifs. When earnings, for example,
are improved or reduced, businesses may predict the consequences on their bottom line.
Measurable scenarios focused on real figures would offer good predictions of what their bottom
line would look like if they sell x percent more products than anticipated.

Understanding the principles that underpin plans and tasks allows a company to assess its status
and adjust its strategy based on fresh information. Using documents that demonstrates a logical
approach to evaluating the facts and drawing conclusions allows an organisation to easily
monitor and assess how things go, how the evidence and findings were taken, and where
adjustments might be made to stay on track.